Contributed by William Edwards, extension economist
Question: How is crop insurance split in a crop-share agreement?
Answer: Under a crop share lease each party is responsible for insuring his or her own share of the crop. Every crop insurance policy states the percent interest that the policy holder has in the crop. For a 50/50 share lease, this would be 50%. The premiums, guarantee, and any indemnity payment would be multiplied by this percent. It is not common practice to include this in the lease agreement, because each party makes the decision to insure his/her share of the crop independently. To insure a share of the crop, talk to a crop insurance agent. It does not have to be the same agent for tenant and land owner. For more information on farmland leases, see the Ag Decision Maker Leasing page.
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